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Economics of Public Antibiotics Development

Issuing monetary incentives, such as market entry rewards, to stimulate private firm engagement has been championed as a solution to our urgent need for new antibiotics, but we ask whether it is economically rational to simply take public ownership of antibiotics development instead. We show that th...

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Autor principal: Okhravi, Christopher
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7253662/
https://www.ncbi.nlm.nih.gov/pubmed/32509716
http://dx.doi.org/10.3389/fpubh.2020.00161
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author Okhravi, Christopher
author_facet Okhravi, Christopher
author_sort Okhravi, Christopher
collection PubMed
description Issuing monetary incentives, such as market entry rewards, to stimulate private firm engagement has been championed as a solution to our urgent need for new antibiotics, but we ask whether it is economically rational to simply take public ownership of antibiotics development instead. We show that the cost of indirectly funding antibiotics development through late phase policy interventions, such as market entry rewards may actually be higher than simple direct funding. This result is reached by running a Monte Carlo simulation comparing the cost of increasing the ratio of investment go-decisions at the outset of pre-clinical development, to the cost of directly funding the same antibiotics under various levels of operational inefficiency. We simulate costs for hypothetical antibiotics targeting six different indications, using data from previous studies. We conclude that while indirect funding may be necessary for the current pipeline we may want to prefer direct funding as a cost effective long-term solution for future antibiotics.
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spelling pubmed-72536622020-06-05 Economics of Public Antibiotics Development Okhravi, Christopher Front Public Health Public Health Issuing monetary incentives, such as market entry rewards, to stimulate private firm engagement has been championed as a solution to our urgent need for new antibiotics, but we ask whether it is economically rational to simply take public ownership of antibiotics development instead. We show that the cost of indirectly funding antibiotics development through late phase policy interventions, such as market entry rewards may actually be higher than simple direct funding. This result is reached by running a Monte Carlo simulation comparing the cost of increasing the ratio of investment go-decisions at the outset of pre-clinical development, to the cost of directly funding the same antibiotics under various levels of operational inefficiency. We simulate costs for hypothetical antibiotics targeting six different indications, using data from previous studies. We conclude that while indirect funding may be necessary for the current pipeline we may want to prefer direct funding as a cost effective long-term solution for future antibiotics. Frontiers Media S.A. 2020-05-21 /pmc/articles/PMC7253662/ /pubmed/32509716 http://dx.doi.org/10.3389/fpubh.2020.00161 Text en Copyright © 2020 Okhravi. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Public Health
Okhravi, Christopher
Economics of Public Antibiotics Development
title Economics of Public Antibiotics Development
title_full Economics of Public Antibiotics Development
title_fullStr Economics of Public Antibiotics Development
title_full_unstemmed Economics of Public Antibiotics Development
title_short Economics of Public Antibiotics Development
title_sort economics of public antibiotics development
topic Public Health
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7253662/
https://www.ncbi.nlm.nih.gov/pubmed/32509716
http://dx.doi.org/10.3389/fpubh.2020.00161
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